§237-27 Exemption of certain petroleum refiners. (a) As used in this section:
(1) "Petroleum products" means petroleum, any distillate, fraction, or derivative of petroleum, natural gas or its components, gas manufactured from a petroleum product, and any product derived from the gas or from the manufacture thereof, such as benzene, xylene, toluene, acetylene, tars, components of tars, and ammonia.
(2) "Refiner" means any person who, in the State, engages in the business of refining petroleum products and is taxable under this chapter, upon the value or gross proceeds of sales of the petroleum products resultant from the business. A person who is engaged in business as a refiner and also in other business shall be deemed a refiner only in respect of the business that produces the products included in the measure of the tax imposed by this chapter.
(3) "Refining" means:
(A) Any process performed by a refiner that includes a change in the character or properties of a petroleum product through the application of heat, or
(B) The compounding by a refiner of a petroleum product with a product that has been refined by the refiner by the process stated in clause (A).
(b) There shall be excluded from the measure of the tax on a refiner such part of the petroleum products resultant from the refiner's business as is to be further refined by another refiner, to the extent that the petroleum products resultant from such further refining will be (or but for this subsection would be) included in the measure of the tax on such other refiner, and where petroleum products are to be used partly for such refining and partly for other purposes, the proportion used for each purpose shall be determined upon the basis of weight or BTU content. [L 1953, c 274, §3; RL 1955, §117-22; HRS §237-27; gen ch 1985]
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